Executives whose companies get a piece of the $700 billion government bailout will have their pay packages strictly limited under proposals that are broadly supported by both Republicans and Democrats in Congress.

In December, Indiana Gov. Mitch Daniels sidestepped opposition from unions and Democrats when he signed a deal outsourcing the administration of his state's welfare and food stamp programs to a consortium led by IBM. For organized labor, the fight didn't end there.

Republicans in Congress are increasingly worried that their stalwart support of President Bush's Iraq war policy may cost them dearly in next year's elections. Should their solidarity crack, it could boost Democrats' efforts to start troop withdrawals.

Attorney General Alberto Gonzales vowed Friday to remain on the job, digging in even as lawmakers questioned whether he could effectively run the Justice Department with no letup in the controversy over the firings of prosecutors.